This blog aims to provide the latest news and comment relating to Peak Oil, and related issues such as supply of other fossil fuels, renewable energy, sustainability and finance. Global issues are covered from a UK perspective.

Saturday, 10 December 2011

Thus our civilization has entered what John Kenneth Galbraith called “the twilight of illusion,” the point at which the end of a historical process would be clearly visible if everybody wasn’t so busy finding reasons to look somewhere else. A decade ago, those few of us who were paying attention to peak oil were pointing out that if the peak of global conventional petroleum production arrived before any meaningful steps were taken, the price of oil would rise to previously unimagined heights, crippling the global economy and pushing political systems across the industrial world into a rising spiral of dysfunction and internal conflict. With most grades of oil above $100 a barrel, economies around the world mired in a paper “recovery” worse than most recessions, and the United States and European Union both frozen in political stalemates between regional and cultural blocs with radically irreconcilable agendas, that prophecy has turned out to be pretty much square on the money, but you won’t hear many people mention that these days.
...
It’s no longer necessary to speculate, then, about what kind of future the end of the age of cheap abundant energy will bring to the industrial world. That package has already been delivered, and the economic rigor mortis and political gridlock that have tightened its grip on this and so many other countries in the industrial world are, depending on your choice of metaphor, either part of the package or part of the packing material, scattered across the landscape like so much bubble wrap.

He goes on to talk about how the industrial system is a kind of arbitrage, making profit off the difference between relatively cheap fossil fuels and expensive human labour. Of course, the price of the former has been rising, and the latter may no be falling, so the game changes...